Risk

There is rarely a single root cause of fraud, but being aware of some of the common fraud schemes, like improper revenue recognition, reserves manipulation, inventory misstatement, and loan impairment deferral, can help organizations deter and detect fraud more readily.

Fraud prevention should not be an afterthought in crisis planning and response; it should be the starting point.

While company management is responsible for assessing fraud risk and establishing controls, other members of the supply chain, like internal auditors, can play an important role in evaluating management’s measures to reduce the risk of fraud, too.

It is also essential to look beyond traditional approaches; for example, what are the potential implications for fraud risk when it comes to the use of non-GAAP measures? How can data analytics and technology support our efforts to combat risk?

The Anti-Fraud Collaboration examines higher-risk areas that are susceptible to fraud and shares insights into what financial reporting supply chain stakeholders can do to identify and mitigate these types of fraud risks more effectively.

The resources below explore multiple angles of fraud risk.

The State of Fraud Risk Management

The State of Fraud Risk Management

Many organizations have faced significant disruptions and challenges during the global pandemic. The Anti-Fraud Collaboration, along with the Business Ethics Leadership Alliance (BELA) and the Center for Audit Quality, brought together representatives from 16 global...

Oteal Pharmaceuticals Case Study

Oteal Pharmaceuticals Case Study

The Anti-Fraud Collaboration has developed a successful series of case studies centered around hypothetical fraud scenarios. Each case study starts with a set of facts about a fictional company, and through the case, members of the financial reporting supply chain and...

Mitigating the Risk of Fraud: Practical Observations and Lessons Learned

Mitigating the Risk of Fraud: Practical Observations and Lessons Learned

In follow up to the release of The Anti-Fraud Collaboration’s publication, Mitigating the Risk of Common Fraud Schemes: Insights from SEC Enforcement Actions report, the AFC facilitated a roundtable discussion among participants representing the financial reporting...